Here is another futile attempt to raise revenue that will cause more harm than good in Costa Rica.

The Ministry of Finance has postponed until December 1 the beggining of the 2% tax which will be retained by financial institutions on card transactions.

The aim of this extension is to give banks more time to adapt their systems and make adjustments seeing as they are the entities that must make the retentions.

Deputy Minister of Finance, Fernando Rodriguez, told Nacion.com that “… it is already decided, we have even communicated it to the banking sector, to the Costa Rican Banking Association of Banks and the House this week, so that they, in turn, can notify their partners. ”

“… When a person is pays with a card in a store, from the payment a 13% sales tax is deducted and from what is left 2% is subtracted as advance payment of tax on income, or 1.77% of the percentage of the total purchase amount.”

Source: Nacion.com